Single Transit Cargo Insurance

Transcription

1 Single Transit Cargo Insurance Policy Document. Allianz Marine & Transit Underwriting Agency As a specialist, our exclusive focus is on providing solutions to clients in the marine, transport and logistics industries. allianzmarineandtransit.com.au POL420 AM&T Single Transit cov_d1.indd 1 31/03/15 11:03 AM

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3 Table of contents Page Introduction and important notices 3 Introduction 3 Who is the insurer? 3 About Allianz Marine & Transit Underwriting Agency and Allianz 3 Our contract with You 3 Summary of the covers available 3 Understanding Your Policy and its important terms and conditions 4 Applying for cover 4 Contact for assistance or confirmation of cover 4 Your Duty of Disclosure 4 Alteration of risk 5 Premium 5 How to make a claim 5 Cancellation rights under the Policy 5 Privacy notice 5 General Insurance Code of Practice 6 Dispute resolution process helping You solve any problems 6 Here is what to do if a complaint or dispute arises 6 If You are not satisfied with the outcome of this process 7 If this insurance has been issued through an insurance intermediary 7 Words with special meaning 7 Section 1 Local Single Transit (Inland movements only) 10 The Transit 10 Insured Events 10 Option A Accidental Damage 10 Option B Specified Perils 11 Additional benefits applicable only to this section 12 Livestock Agistment 12 Livestock Mustering costs 12 Livestock Wandering off 12 On-forwarding 12 Section 1 exclusions 12 Page Section 2 Single Transit imports and exports 13 The Transit 13 Insured Events 14 Section 2 exclusions 14 Additional benefits applicable only to this Section 14 Certificates of Insurance/Letter of Credit Clause 14 CFR Pre-Shipment Clause 14 Duty Clause 14 Insufficiency of Packing Clause 15 Unseaworthiness and Unfitness Exclusion Modification Clause 15 Optional benefits Section 2 15 Buyers Contingency (Difference in Conditions) Clause 15 Sellers Interest Clause 15 Conditions common to Sections 1 and 2 16 How much We will pay 16 Additional benefits 17 Assignment 17 Brands Clause 17 Cargo ISM Forwarding Charges 17 Container Demurrage Charges 17 Debris removal/clean up Costs 17 Delayed Unpacking Clause 18 Expediting Expenses Clause 18 Fumigation and Decontamination Clause 18 Insolvency of Carriers 18 Interests of other parties 18 Loss of information/data/media 19 Packaging, containers and equipment 19 Repacking costs 19 Resecuring costs 19 Sealed Container Clause 19 Sorting Charges Clause 19 Strikes Diversion Expenses Clause 19 Sue and Labour Clause 19 1

4 Page General exclusions applicable to both Sections 20 Property (Goods) exclusions 20 Perils exclusions 20 Cargo ISM endorsement 21 Nuclear/Terrorism/Cyber exclusions 21 General conditions and Cover restrictions applicable to both Sections 22 Applicable law 22 Authority 22 Breach of warranty or condition 22 Delay or interruption by You 22 Due Care 22 Exchange Rate 22 On deck shipments 22 Other insurance 22 Prohibited Cover or payments 22 Subrogation/Rights of recovery 22 Waiver of subrogation rights 23 Claims procedure 23 GST notice 23 Claims procedures 24 2

5 Introduction and important notices Introduction Welcome and thank You for choosing Our Marine Single Transit Cargo Policy. This is an important document. You should read it carefully before making a decision to purchase this insurance. It will help You to: decide whether this insurance will meet Your needs; and compare it with other products You may be considering. Please note that any recommendation or opinion in this document is of a general nature only and does not take into account Your objectives, financial situation or needs. You need to decide if this insurance is right for You and You should read all of the documents that make up the Policy to ensure You have the cover You need. Who is the insurer? The insurer of this product is Allianz Australia Insurance Limited (Allianz) ABN AFS Licence No Allianz is one of Australia s largest general insurers. We utilise years of local expertise, combined with global experience to offer a wide range of products and services to Our customers. As a member of the worldwide Allianz Group, We are committed to continuous improvement of Our products and services and strive to achieve this through knowledge transfer within the Group, dedicated technical research units, sharing new product developments and a wide range of risk management services globally. In the Policy document We refer to Allianz Australia Limited as We, Us, Our and Allianz. About Allianz Marine & Transit Underwriting Agency and Allianz Allianz Marine & Transit Underwriting Agency Pty Limited ABN AFS Representative No of Level 1, 61 Lavender Street, Milsons Point NSW 2061 is an Australian organisation that specialises in providing insurance products for cargo, commercial hull and marine liabilities. Allianz Marine & Transit Underwriting Agency have been given a binding authority by Allianz to issue, vary and dispose of this insurance and settle claims as agents of Allianz as if they were Allianz the insurer. Our contract with You Where We agree to enter into a Policy with You it is a contract of insurance between Us and You (see the definition of You for details of who is covered by this term). We only cover those parties shown in the Schedule unless otherwise stated in the Policy as being a person or entity entitled to cover. If more than one person is insured under the Policy, a failure or wrongful action by one of those persons may adversely affect the rights of any other person insured under the Policy. We cover You in accordance with the insurance as described in this Policy, for the Transit(s) shown on the Schedule. The maximum amount We will pay under the Policy will not exceed the Sum Insured shown on the Schedule unless otherwise specified herein. You are required to comply with the terms and conditions of the Policy. Please remember that if You do not comply with any term or condition, We may (to the extent permitted by law) decline or reduce any claim payment and/or cancel Your Policy. The Policy consists of: this document which sets out the standard terms of Your cover and its limitations; Your current Schedule issued by Us. The Schedule is a separate document, which shows the insurance details relevant to You. It may include additional terms, conditions and exclusions relevant to You that amend the standard terms of this document; and any other change to the terms of the Policy otherwise advised by Us in writing (such as an Endorsement). These written changes may vary or modify the above documents. These are all important documents and should be carefully read together and kept in a safe place for future reference. When You enter into the Policy You confirm and warrant that You have read or will read the Policy documents when provided to You. Any new or replacement Schedule We may send You, detailing changes to Your insurance or the Period of Insurance, will become the current Schedule, which You should carefully read and retain. We reserve the right to change the terms of this insurance where permitted to do so by law. Summary of the covers available Please note that this is a limited summary only and not a full description of the covers. The Policy is made up of two sections. Each cover noted is subject to terms, conditions, exclusions and limitations that are not listed in the summary. Section 1 Single Transits within Australia Section 2 Single imports to and single exports from Australia 3

6 Each of these sections provide for different voyages and Conditions Of Cover as detailed in each section of the Policy. You need to read the cover sections and the Policy to properly understand the cover. As Sections 1 and 2 may be subject to different laws (e.g. the Insurance Contracts Act and the Marine Insurance Act), each section (comprising the information contained in the Schedule, in the Policy wording and in any Endorsement) must be read in conjunction with the general conditions and general exclusions and other documents setting out the terms of the Policy as though it were a separate Policy. You are not automatically insured under each section. You are only covered for the sections that are specified in the Schedule. Understanding Your Policy and its important terms and conditions To properly understand the significant features, benefits and risks of this insurance You need to carefully read: about the available cover and benefits and exclusions in the relevant Sections One or Two (the standard cover provided under each section can be affected by the following); the rest of this Introduction section this sets out how You apply for cover, the basis on which We insure You, the duty of disclosure You need to meet before We insure You, Our privacy information, Our dispute resolution procedures and other important information; the Words with special meaning section this sets out what We mean by certain words used in the Policy. These words begin with a capital letter throughout this document; the General Policy exclusions applicable to all sections section this sets out the general exclusions and limitations that apply to all covers and benefits; the General Policy conditions applicable to all sections and Claims sections these set out certain general rights and obligations that You and We have and other cover restrictions; all of the documents that make up the Policy, including the Policy Schedule and any Endorsements or other written changes to the cover We issue You with these contain specific details relevant to You and can affect the cover. Headings are provided for reference only and do not form part of Your Policy for interpretation purposes. Applying for cover When You apply by completing Our application process You need to provide the information We require to determine whether to issue a Policy and if so, on what terms, including (to the extent they are optional): the covers and benefits You want (including the Goods You wish to cover); the limits You want; the Transit You want to cover; whether You want any third parties to be noted as having an interest; the Excesses that You agree to contribute for certain claims; whether any standard terms need to be varied (this may be by way of an Endorsement). Where We agree to issue a Policy, cover is provided on the basis: that You have paid or agreed to pay Us the Premium for the cover provided; of the verbal and/or written information provided by You which must have given in accordance with Your duty of disclosure either verbally or in writing. Your duty of disclosure and the consequences of nondisclosure, are provided under the heading Your Duty of Disclosure below. Contact for assistance or confirmation of cover If You need to confirm any Policy transaction or clarify any of the information contained in this Policy or, if You have any other queries, please contact Us via the details on the back cover. Your Duty of Disclosure Before entering into a contract of general insurance with Us, You have a duty, under the Insurance Contracts Act 1984 and the Marine Insurance Act 1909 (as applicable) to disclose to Us every matter which: You know; or a reasonable person in the circumstances could be expected to know, is relevant to Our decision whether to accept the risk of the insurance and, if so, on what terms. You have the same duty to disclose those matters to Us before You renew, extend, vary or reinstate a contract of general insurance. This duty of disclosure applies until the contract is entered into (or renewed, extended, varied or reinstated as applicable). Your duty however does not require disclosure of any matter: that diminishes the risk to be undertaken by Us; or that is of common knowledge; or 4

7 that We know or, in the ordinary course of Our business as an insurer, ought to know; or as to which compliance with Your duty is waived by Us. Non-disclosure Where the Insurance Contracts Act applies Where the Insurance Contracts Act applies, if: You fail to comply with Your duty of disclosure, We may be entitled to reduce Our liability under the contract in respect of a claim, cancel the contract or both; Your non-disclosure is fraudulent, We may also have the option of avoiding the contract from its beginning. Where the Marine Insurance Act 1909 applies Where the Marine Insurance Act 1909 applies, if You fail to comply with Your duty of disclosure, We may avoid the contract from its beginning. Who must tell Us? Everyone who is insured under the Open Cargo Policy must answer the questions in this way. Alteration of risk Where the Insurance Contracts Act applies If You become aware of any changes to the facts or circumstances which existed when this insurance commenced that change the nature of the risk (for example, the nature of Your business operations, or other circumstances that affect the Insured Goods carried) in a way that would increase the risk of loss or damage occurring You must notify Us immediately in writing. If We agree to the change We will do so in writing and You must pay Us any additional Premium We require. Where the Marine Insurance Act applies You must give Us immediate notice in writing if there is any material change in the circumstances or nature of the risks covered by this Policy, or no claim arising after the change shall be payable unless We have agreed to the change in writing. Premium Your Premium the base Premium We charge is calculated based on a number of factors such as: type of Goods to be insured, where the Goods are to be transported to and from, the cover and Sum Insured required; Our obligation to pay relevant government taxes and charges. For example, GST payable in relation to the Policy. When You apply for this insurance, You will be advised of the total Premium amount payable, when it needs to be paid and how it can be paid. This amount will be set out in the Schedule, which will be sent to You after commencement of cover under the Policy. If You fail to pay the Premium We may reduce any claim payment by the amount of Premium owing and/or cancel the Policy. How to make a claim If You need to make a claim under the Policy, please refer to the Claims procedure section on page 24. Cancellation rights under the Policy How You may cancel this Policy You may cancel this Policy at any time prior to the Transit taking place by telling Us in writing that You want to cancel it. You can do this by giving the notice to Your intermediary or Us. You cannot cancel the Policy once the Transit has commenced. Where there is more than one contracting Insured We will only cancel the Policy when a written agreement to cancel the Policy is received from all contracting parties named as the Insured or from a person authorised to act as agent of all such persons. How We may cancel this Policy We may cancel this Policy by informing You in writing, subject to any relevant law. We will give You this notice in person or send it to Your address last known to Us. Return Premium If You cancel the Policy We will refund to You the Premium. If the Premium has been funded by a Premium funding company which holds a legal right over the Policy by virtue of a notice of assignment and/or irrevocable power of attorney, a refund will be made to the Premium funding company in accordance with the provisions set out in Cancellation rights under the Policy. Privacy notice At Allianz, We give priority to protecting the privacy of Your personal information. We do this by handling personal information in a responsible manner and in accordance with the Privacy Act 1988 (Cth). How We collect Your personal information We usually collect Your personal information from You or Your agents. We may also collect it from Our agents and service providers; other insurers and insurance reference bureaus; people who are involved in a claim or assist Us in investigating or processing claims, including third parties claiming under Your Policy, witnesses and medical practitioners; third parties who may be arranging insurance cover for a group that You are a part of; law enforcement, dispute resolution, statutory and regulatory bodies; marketing lists and industry databases; and publicly available sources. 5

8 Why We collect Your personal information We collect Your personal information to enable Us to provide Our products and services, including to process and settle claims; offer Our products and services and those of Our related companies, brokers, intermediaries and business partners that may interest You; and conduct market or customer research to determine those products or services that may suit You. You can choose not to receive product or service offerings from Us (including product or service offerings from Us on behalf of Our brokers, intermediaries and/or Our business partners) or Our related companies by calling the Allianz Direct Marketing Privacy Service Line on , EST 8am-6pm Monday to Friday, or going to our website s Privacy section at Who We disclose Your personal information to We may disclose Your personal information to others with whom We have business arrangements for the purposes listed in the paragraph above or to enable them to offer their products and services to You. These parties may include insurers, intermediaries, reinsurers, insurance reference bureaus, related companies, our advisers, persons involved in claims, external claims data collectors and verifiers, parties that We have an insurance scheme in place with under which you purchased your policy (such as a financier or motor vehicle manufacturer and/or dealer). Disclosure may also be made to government, law enforcement, dispute resolution, statutory or regulatory bodies, or as required by law. Disclosure overseas Your personal information may be disclosed to other companies in the Allianz Group, business partners, reinsurers and service providers that may be located in Australia or overseas. The countries this information may be disclosed to will vary from time to time, but may include Canada, Germany, New Zealand, United Kingdom, United States of America and other countries where the Allianz Group has a presence or engages subcontractors. We regularly review the security of Our systems used for sending personal information overseas. Any information disclosed may only be used for the purposes of collection detailed above and system administration. Access to Your personal information and complaints You may ask for access to the personal information We hold about You and seek correction by calling EST 8am 6pm, Monday to Friday. Our Privacy Policy contains details about how You may make a complaint about a breach of the privacy principles contained in the Privacy Act 1988 (Cth) and how We deal with complaints. Our Privacy Policy is available at Telephone call recording We may record incoming and/or outgoing telephone calls for training or verification purposes. Where We have recorded a telephone call, We can provide You with a copy at Your request, where it is reasonable to do so. General Insurance Code of Practice The General Insurance Code of Practice was developed by the Insurance Council of Australia to further raise standards of practice and service across the insurance industry. We keenly support the standards set out in the Code. You can obtain more information on the Code of Practice and how it assists You by contacting Us. Contact details are provided on the back cover of this document. Dispute resolution process helping You solve any problems Complaints or disputes are not an everyday occurrence at Allianz. We strive to do things the right way and keep Our customers happy. Sometimes, complaints or disputes do occur and when this happens, Our objective is to resolve any disagreement as amicably and as quickly as possible. We believe the best way to achieve this is to provide You with an opportunity for an unbiased review of the issue. Here is what to do if a complaint or dispute arises Regardless of whether the complaint or dispute involves Our staff, an agent, loss adjuster, assessor, investigator or the service We provide, simply contact Us on EST 8am-6pm, Monday-Friday, speak to one of Our operators and provide them with the details of the issue concerning You. They will attempt to resolve the complaint or dispute; if they are unable to do so they will log it and refer it to the appropriate business unit for resolution. Within Our organisation We have established a complaints and disputes resolution process. This is a free service. It is a system designed to log, track, escalate and monitor complaints received from clients and customers about Our services and products. A staff member involved in the complaints and disputes resolution process will write to You within 15 working days advising the outcome of the review and reasons for their decision. We do not consider a complaint or dispute to be resolved until a proposed resolution or solution has been communicated to You and You have accepted the resolution or solution. 6

9 If You are not satisfied with the outcome of this process If We are unable to resolve the complaint or dispute, We will offer You the option of referring the matter to the insurance industry s external independent complaints scheme (subject to eligibility). The scheme will only review complaints or disputes if they have gone through Our internal complaints and disputes resolution process. If this insurance has been issued through an insurance intermediary If Your Policy has been issued through Our agent, or a broker who is acting under an agency arrangement such as a binder with Us, then they are acting as Our agent and not as Your agent. If Your Policy has been issued by a broker, other than a broker acting under such an agency arrangement with Us, then the broker is acting as Your agent. Where this Policy has been arranged through an intermediary a commission is payable by Us to them for arranging the insurance. Words with special meaning Accident or Accidental means an event or occurrence which results in loss or damage to the Goods that You did not intend or expect to happen or could not reasonably have been expected by a person with actual knowledge of the Goods and method of transport. Average or Coinsurance means, if the value of the Goods insured under this Policy shall at the time of loss or damage be of greater value than the Sum Insured specified in the Schedule, We shall only pay You the proportional amount that the total value of the loss bears to the Sum Insured specified in the Schedule. Basis of Valuation means the agreed formula that We will use to calculate how much We will pay You in the event of loss or damage. This is as stated in this Policy on page 16, unless otherwise agreed and specified in the Schedule. Certificate of Insurance means the document bearing details of the Policy either issued by You or by Us certifying that insurance covers a particular shipment. CIF means Cost, Insurance and Freight. CFR means Cost and Freight. Conditions of Cover means the cover We are providing under this Policy as specified in the Schedule. Constructive Total Loss means either: a) the actual total loss of the Goods appears to be unavoidable; or b) to prevent the Goods from being a total loss would cost more than their value when preserved. Conveying Vehicle, Conveyance means any ship, vessel, aircraft, rail and road transport used to transport the Insured Goods, including Your own vehicles where applicable. Deliberate Third Party Act This includes: deliberate damage by Federal, State or Local authorities exercising their rights under current legislation in order to prevent or minimise an environmental hazard/ pollution resulting from an Insured Event and provided this has not resulted from Your lack of due diligence; the deliberate act of any other party other than You which was committed without Your knowledge or connivance. Due Care means the exercising by You of appropriate levels of prudence and caution in: the selection of, and provision of handling instructions to, third party transport service providers; 7

10 the selection of packaging appropriate to protect the Goods; the handling, storage and movement of Goods by You including: (i) (ii) security measures to protect the Goods against theft where appropriate based on the nature of the Goods whilst either in Your vehicle or whilst temporarily removed from the Conveying Vehicle; the maintenance of Your Conveying Vehicles (including refrigeration machinery and security devices) in proper repair and sound working conditions; (iii) the employment of competent drivers and other employees involved in transport or handling of Goods; and (iv) the compliance with all statutory obligations, by laws, regulations and standards imposed by public authorities. Endorsement means documentary evidence of an alteration to this Policy or the Schedule which forms part of the Policy. Excess means the amount payable by You for each and every loss recoverable under the Policy as specified in the Schedule, this document or any Endorsement to the Policy. Where an Excess is expressed as a specified sum it means the amount specified. Where the Excess is expressed as a percentage it means the monetary equivalent of such percentage of each loss. Where a claim is made in respect of more than one occurrence, the Excess will apply as though a claim was made for each separate occurrence. Flood means the inundation of normally dry land by water overflowing from the normal confines of any natural watercourse or lake, whether or not altered or modified, or of any reservoir, canal or dam. FOB means Free On Board. General Average The maritime legal principle by which, should the shipowner, one or more cargo owners, or other parties with an interest in property on board a sea going vessel, make an extraordinary sacrifice or expenditure for the purposes of preserving all property at risk at a time of peril, all parties with property that has been preserved by such sacrifice or expenditure can be called upon to contribute a proportion of loss incurred. Geographical Limit(s) means the geographical area of operation specified in the Schedule. For cover under Section 1 this is limited to transits to transits starting and terminating within Australia including, where applicable, sea voyages within Australian Territorial waters between Australian ports or places. Institute Clauses means the standard wordings as prepared by the Lloyd s Market Association and International Underwriting Association of London. Any Institute Clauses referred to in the Policy or the Schedule or any other document are deemed to be those most current at the time of attachment of the risk and are amended to be subject to Australian law and practice. In the event of any of these clauses being altered or added to, new clauses shall automatically form part of this Policy, unless the alteration or addition reduces Your cover in which case You shall be advised in writing. If We give You written notice of a revision of these clause, then, the revised clauses will apply to risks attaching from midnight 30 days after Our notice has been given to You. A posted notice is deemed given to You at the time it would have been delivered in the normal course of the postal service. Insurable Interest means that You have a legal or equitable interest in the Insured Goods in consequence of which You may benefit by their safety and be prejudiced by their loss. Insured, You or Your means any party specified in the Policy Schedule. Where the Insured is comprised of more than one entity, the term You will be considered as applying to each entity in the same manner as though a separate Policy had been issued to each entity, however, Our limit of liability shall not exceed the Sum Insured specified in the Schedule and Our liability to make supplementary payments will apply as though there were not separate policies issued to each entity. Insured Events means an event shown in the individual section under the heading Insured Events applicable to the section, and for which cover is available under that section only. Insured Goods or Goods means the Goods specified in the Schedule which You own or which You have contractually accepted responsibility to insure including: all retail and sales packaging; shipping containers owned by You or in Your care, custody or control, to the extent that You are legally liable to pay for any physical loss of or damage to the container(s) and subject to any sub limits expressed in this Policy or the Schedule. This Policy does not cover items which are not specified in the Schedule and in particular: Livestock. Where declared, we are able to cover inland movements under Section 1 under this Policy wording, but not imports/exports under Section 2; bloodstock, prize animals or stud animals; live plants & trees; works of art or antiques; 8

11 cigarettes, tobacco/tobacco products; dangerous Goods as defined by the current Australian Dangerous Goods Code or any government agency or authority which by their nature require special licencing of the driver or vehicle and/or are defined as a Placard Load. This exclusion does not apply to small consignments, limited quantities or retail distribution loads of dangerous Goods where concession is provided under the current Australian Dangerous Goods Code; precious metals and stones, jewellery or money (which means any coin or banknote); bullion, cheques, credit or other card sales vouchers, securities or shares; bonds, deeds, bills of exchange or any document that represents or is exchangeable for money; household Goods and personal effects radioactive Goods or explosive Goods. Livestock means sheep, cattle, goats and pigs and/or other herd animals as identified in the Policy. Livestock does not include horses, birds or other animals. Livestock can be insured for inland movements only under this Policy. Period of Insurance means the period commencing on the effective date and ending at 4pm in the State or Territory of Australia in which the Policy is insured on the expiry date as shown in the Schedule or upon termination of the insured Transit whichever first occurs. Policy means this document and any Endorsement, specification, attachment or memoranda affixed to it, the Schedule and the Proposal. Premium means the Premium specified in the current Schedule, any Endorsement Premium plus any applicable Government charges. Proposal means the application form completed by You or the quotation slip submitted on Your behalf in which You provided the information upon which We relied to enter into the Policy. Salvage has two meanings subject to context, being either: Subject Matter Insured as appearing in the Institute Clauses has the same meaning as Insured Goods or Goods. Sum Insured means the sum insured specified in the Schedule for any one loss or series of losses arising out of the same event. Terrorism means any act(s) of any person(s) or organisation(s) involving: the causing, occasioning or threatening of harm of whatever nature and by whatever means, putting the public or any section of the public in fear, in circumstances in which it is reasonable to conclude that the purpose(s) of the person(s) or organisation(s) concerned are wholly or partly of a political, religious, ideological or similar nature. Terrorism shall also include steps taken to prevent, suppress, control or reduce the consequences of any actual, attempted, anticipated, threatened, suspected or perceived Terrorism. Transit means the voyage specified in Section 1 or 2. The insured Transit is that specified in the Geographical Limits and set out in the Schedule subject to any voyage trading restrictions applicable to exports. Underwriter, Insurer, We, Us or Our means the Insurer Allianz Australia Insurance Limited ABN (Allianz) AFS Licence No of 2 Market Street, Sydney, NSW, 2000 (the insurer of Your Policy), through its agent Allianz Marine & Transit Underwriting Agency Pty Limited. War, Warlike Activities means invasion, act of foreign enemy, hostilities (whether War is declared or not), civil War, rebellion, revolution, insurrection or civil strife following any of these. Warranty(ies) means You will undertake that some particular thing shall or shall not be done, or that some conditions shall be fulfilled or that You affirm or negate the existence of a particular state of facts. The warranty may be express or implied. what is left of the Goods or Personal Property after it has suffered loss or Damage; or the physical act of recovering Goods or Property which has been lost or Damaged, but which has residual commercial value. Schedule means the most recently dated Schedule We have provided to You which specifies important information such as the Policy number, Geographical Limits, the section that is in force, the details of the Insured Goods, the Sums Insured and any Excess payable. 9

12 Section 1 Local single Transit (inland movements only) We will indemnify You for loss of or damage to the Goods described in the Schedule whilst in Transit within the Geographical Limits specified in the Schedule caused by an Insured Event occurring during the insured Transit. The Transit General Goods/Temperature Controlled Goods The insured Transit commences when the Goods are first moved inside the warehouse/premises or place of storage for the specific purpose of loading on to the Conveying Vehicle for Transit to a destination outside the premises at which loading takes place, continues during the ordinary course of Transit and terminates when: the Insured Goods are last moved when being delivered to the intended destination or such other place as You may instruct, or the normal course of transport is interrupted at Your (or the seller/purchaser s) election for the purposes of storage, allocation or distribution. The insured Transit includes any transit to or from and while the Insured Goods are at any premises for the purpose of packing or preparation for shipment for a period of up to one month prior to shipment. The insured Transit excludes any period of dismantling, erection, commissioning or installation prior to or post Transit as defined above, unless otherwise agreed by Us and specified in the Policy Schedule. Livestock The insured Transit commences for each animal when it enters the Conveying Vehicle or its loading ramp, continues during the ordinary course of Transit and terminates for each animal when it exits the Conveyance or its loading ramp at the intended destination or such other place as You may instruct. Motor Vehicles The insured Transit commences when the wheels or tracks of each motor vehicle being transported as Goods first move for the purposes of being driven onto the loading ramps of the Conveying Vehicle from the ground or loading dock adjacent to the Conveying Vehicle or from the point where the vehicle is currently parked provided that the distance driven to the Conveying vehicle does not exceed 200 metres. Cover terminates when the wheels or tracks of each motor vehicle being transported as Goods are driven off the Conveyance and are on the road or loading dock 10 immediately adjacent to the Conveyance, or are parked in the premises or in the loading dock, provided this is within 200 metres of Your Conveying Vehicle and the vehicle is driven from the Conveying vehicle into the loading dock or premises immediately as part of the unloading process. Additional Transit Provisions (All Goods) The following provisions apply to all types of Goods whilst in Transit provided that the Goods remain within the Geographical Limits expressed in the Policy Schedule: Incidental Storage: Transit continues during storage incidental to Transit which has not been requested by You or the purchaser/seller of the Goods, but is necessary solely for the purposes of normal transhipment, handling, agistment (of Livestock) or load consolidation/deconsolidation. In the case of Livestock during long haul movements, Transit continues for up to 7 days during necessary temporary resting/spelling. Reconsigned/Reshipped Goods: Transit is deemed to continue where the Goods are reconsigned or reshipped direct from a wharf or airport at the intended destination to another destination within the Geographical limits specified in the Policy Schedule, until arrival at the final destination. Shut Out Clause: The Transit is deemed to include periods when the Insured Goods are shut out awaiting transfer to another Conveyance after Transit has commenced where this is outside Your control. Overcarried Clause: The Transit continues in the event that Goods are overcarried until their delivery to the intended destination. Insured Events Subject to the Conditions Of Cover specified in the Schedule and exclusions of this Policy, this insurance covers up to the Sum Insured loss of or damage to the Goods whilst in Transit caused by either Option A or Option B as selected by You and as specified in the Schedule. Option A Accidental Damage General Goods Loss of or damage to the Insured Goods caused by: any Accident; insufficiency of packaging or preparation of the Insured Goods (where applicable) which: (i) (ii) was carried out by a party other than You and occurred entirely without Your privity or knowledge; or where carried out by You but You can demonstrate that there was no lack of Due Care on Your part and You were unaware that the packaging was insufficient in nature; Deliberate Third Party Acts.

13 Where the Goods are transported by sea, We will also cover (up to the Sum Insured specified in the Schedule): any General Average and/or Salvage contribution You are required to pay; the risks of jettison, washing overboard and loss or damage caused by a General Average sacrifice. Refrigerated, temperature controlled, chilled, or perishable Goods Loss of or damage to the Insured Goods caused by: any Accident; insufficiency of packaging or preparation of the Insured Goods which: (i) (ii) was carried out by a party other than You and occurred entirely without Your privity or knowledge; or was carried out by You but You can demonstrate that there was no lack of Due Care on Your part and You were unaware that the packaging was insufficient in nature, Deliberate Third Party Acts; but excluding deterioration of Goods due to variation in temperature, except where this results from variation in temperature below or above the documented required range for transportation of the Goods for a period in excess of 4 hours or otherwise stated in the Schedule, caused by: Accidental failure, breakdown, stoppage or malfunction of the refrigerating machinery which results in: (i) (ii) its failure to deliver air at the preset temperature; or it being unable to perform its normal refrigeration cycle; Mismanagement of the refrigerating machinery by the transport operator/carrier, including selection of incorrect temperature or failure to turn on power; or Disruption of the airflow within the carrying vehicles or container caused by mismanagement of the interior bulkheads by the transport operator/carrier. Where the refrigerated Goods are transported by sea, We will also cover (up to the Sum Insured specified in the Schedule): any General Average and/or Salvage contribution You are required to pay; the risks of jettison, washing overboard and loss or damage caused by a General Average sacrifice. In the event that You transport Your own temperature controlled Goods, We will not cover You where the loss is caused by Your error/omission or where You do not properly maintain Your refrigeration machinery. If required by Us You will need to provide evidence that the refrigeration machinery has been properly maintained. Livestock If the Insured Goods are Livestock We will cover You for Accidents, or Deliberate Third Party Acts which result in: injury, death or destruction; or wandering off of the Livestock where the Livestock are unable to be mustered or recovered. Where the Livestock are transported by sea, We will also cover (up to the Sum Insured specified in the Schedule): any General Average and/or Salvage contribution You are required to pay discharge at a port of distress the risks of jettison, washing overboard and loss or damage caused by a General Average sacrifice. Cover includes slaughter for humane reasons where necessary due to an Insured Event. All Goods Subject to the Conditions Of Cover specified in the Schedule and exclusions of this Policy, in addition this insurance covers loss of or damage to the Goods during Transit caused by: strikers, locked-out workers or persons taking part in labour disturbances, riots or civil commotions; any terrorist or any person acting from a political motive in accordance with the Transit And Terrorism Clause forming part of this Policy (page 21). If the Transit is by sea or air, this Policy further covers loss or damage to the Goods, caused by War or Warlike Activities whilst the Goods are on board the Conveyance. Option B Specified Perils Loss or damage to the Insured Goods caused by: fire, Flood, lightning, hail, windstorm, tornado or cyclone, or explosion; collision of the Conveying Vehicle with any external object other than the road, gutter, curb or uneven road surface; collapse of bridges or culverts; impact of the Insured Goods with something not on or part of the Conveying Vehicle other than the road or ground; jack-knifing, overturning or derailment of the Conveying Vehicle; sinking, capsizing or stranding of any vessel carrying the Insured Goods; crashing or forced landing of any aircraft (including an aircraft used to transport the Goods); theft of Insured Goods from the Conveying Vehicle following forcible and violent entry, pilferage or non-delivery; 11

14 Deliberate Third Party Act; strikers, locked out workers or persons taking part in labour disturbances, riots or civil commotions; any terrorist or any person acting from a political motive in accordance with the Transit and Terrorism Clause forming part of this Policy (page 21). If the Transit is by sea or air, this Policy further covers loss or damage to the Goods, caused by War or Warlike Activities whilst the Goods are on board the Conveyance. If transported by sea, We will also cover (up to the Sum Insured specified in the Schedule): stranding, sinking, burning, grounding or collision of the vessel with any object other than water; discharge at a port of distress; any General Average and/or Salvage contribution You are required to pay; risks of jettison, washing overboard and loss or damage caused by a General Average sacrifice. For temperature controlled, chilled, perishable or refrigerated Goods, cover is extended to include deterioration of such Goods following a Insured Event. For Livestock, death or destruction caused by an Insured Event are covered by the Policy. We will also pay for slaughter of Livestock for humane reasons where necessary due to an Insured Event. Additional benefits applicable only to this Section Livestock Agistment This Policy covers all reasonable costs and expenses necessarily incurred in maintaining Livestock at agistment when caused by an Insured Event. The maximum amount We will pay is limited to $1000 per animal and $25,000 in the aggregate for any one loss or series of losses caused by the one Insured Event, or as otherwise specified in the Schedule, where different, in addition to the Sum Insured. Livestock Mustering costs This Policy covers all reasonable costs and expenses necessarily incurred for mustering of the Livestock at the scene of the Accident when caused by an Insured Event. The maximum amount We will pay is limited to $1000 per animal and $25,000 in the aggregate for any one loss or series of losses caused by the one Insured Event, or as otherwise specified in the Schedule, in addition to the Sum Insured. Livestock Wandering off This Policy covers loss of Livestock due to wandering from the scene of the Accident caused by an Insured Event. The maximum amount We will pay is limited to $1000 per animal and $25,000 in the aggregate for any one loss or series of losses caused by the one Insured Event, or as otherwise specified in the Schedule, in addition to the Sum Insured. On-forwarding If We pay a claim under this Policy for loss or damage to the Insured Goods We will, in addition to the Sum Insured, pay any extra costs reasonably incurred to deliver the Insured Goods to their intended destination, or place from which they were dispatched, but in no case will Our liability be more than the Sum Insured of the Insured Goods. Section 1 exclusions This Section does not cover any loss, damage, liability, destruction, cost or expense of any nature whatsoever that is directly or indirectly caused by or contributed to by or arising from any of the following: Insolvency 1. Insolvency or financial default of any agent or transport services provider, where You were aware, or should have been aware in the course of normal business activities, of the circumstances. Failure to take Due Care and/or deliberate damage Where the Goods are being transported in Your own vehicle, loss or damage to Goods caused by: 2. Theft of Insured Goods if the Conveying Vehicle, premises or building is not securely locked when left unattended and any alarms are not activated. 3. Transportation: (i) (ii) In an unsafe or unroadworthy vehicle; In quantities in excess of the weight, mass or dimensions permitted for the Conveying Vehicle design or License or where greater than permitted by law, regulation, permit or advisory sign; (iii) By an employee driver where unlicensed or where the employee driver s faculties were impaired by drugs or alcohol in excess of that permitted by law, unless the circumstances did not contribute to the loss and/ or You were unaware of them and in the ordinary course of business they could not be reasonably known, detected and prevented by You. 12

15 4. Transportation of dangerous goods which are not carried in accordance with the provisions of the current Australian Dangerous Goods Code, regardless of package size or quantity, and whether or not Dangerous Goods have been specified in the Schedule. 5. Shifting of the Goods or improper stowage and/or restraint of the Goods, unless You can demonstrate that You complied with all statutory requirements in respect of the load. 6. Other cargo left inside a vehicle or machine which has not been suitably secured to prevent movement. Normal Losses etc Loss or damage to Goods due to: 7. Inherent vice (except for refrigerated, temperature controlled or perishable Goods due to variation in temperature as provided in Cover A (where taken)). 8. Moths, mould, mildew, insects, rats or other vermin, ordinary leakage, loss in weight or volume or wear and tear of the Goods. Livestock Loss or damage to Livestock: 9. Caused by innoculation or its after effects, infectious diseases, abortion or loss or death of foetus. 10. Which are not in good health and fit for travel prior to loading. The General Exclusions applicable to both Sections on page 20 also apply to claims under this section. Section 2 Single Transit imports and exports We will indemnify You for loss of or damage to the Goods as described in the Schedule whilst in Transit within the Geographical Limits specified in the Schedule caused by an Insured Event occurring during Transit. Cover is not available for overseas Livestock movements (imports/exports) under this Section 2. The Transit This section covers transits within the Geographic Limits and in accordance with the Transit Clause specified in the applicable Institute Clauses noted in the Schedule, amended as follows: General Goods/temperature controlled Goods The insured Transit commences when the Insured Goods are first moved inside the warehouse/premises or place of storage for the specific purpose of loading onto the Conveying Vehicle for transport to a destination outside the premises at which loading takes place continues during the ordinary course of Transit as defined in the applicable Institute Clauses and terminates when: the Insured Goods are last moved when being delivered to the intended destination or such other place as You may instruct, or the normal course of transport is interrupted at Your (or the seller/purchaser s) election for the purposes of storage, allocation or distribution. The insured Transit includes any transit to or from and while the Insured Goods are at any premises for the purpose of packing or preparation for shipment for a period of up to one month prior to shipment. The insured Transit excludes any period of dismantling, erection, commissioning or installation prior to or post Transit as defined above, unless otherwise agreed by Us and specified in the Policy Schedule. Motor vehicles The insured Transit commences when the wheels or tracks of each motor vehicle being transported as Goods first moves for the purposes of being driven onto the loading ramps of the Conveying Vehicle from the ground or loading dock adjacent to the Conveying Vehicle or from the point where the vehicle is currently parked provided that the distance driven to the Conveying vehicle does not exceed 200 metres. Cover continues during the ordinary course of Transit as defined in the applicable Institute Clauses. 13

16 Cover terminates when the wheels or tracks of each motor vehicle being transported as Goods are driven off the Conveyance and are on the road or loading dock immediately adjacent to the Conveyance, or are parked in the premises or in the loading dock, provided this is within 200 metres of Your Conveying Vehicle and the vehicle is driven from the Conveying vehicle into the loading dock or premises immediately as part of the unloading process. In all other respects the termination provisions contained in the Institute Clauses shall apply. Additional Transit provisions (All Goods) The following provisions apply to all types of Goods provided that the Goods remain within the Geographical Limits expressed in the Policy Schedule: Incidental Storage: Transit continues during storage incidental to Transit which has not been requested by You or the purchaser/seller of the Goods, but is necessary solely for the purposes of normal transhipment, handling, or load consolidation/ deconsolidation. Reconsigned/Reshipped Goods: Transit is deemed to continue where the Goods are reconsigned or reshipped direct from a wharf or airport at the intended destination to another destination within the Geographical limits specified in the Policy Schedule, until arrival at the final destination. Shut Out Clause: The Transit is deemed to include periods when the Insured Goods are shut out awaiting transfer to another Conveyance after Transit has commenced where this is outside Your control. Overcarried Clause: The Transit continues in the event that Goods are overcarried until their delivery to the intended destination Insured Events Subject to the Conditions Of Cover specified in the Schedule and exclusions of this Policy, this insurance covers loss of or damage to the Goods during Transit as per the Institute Clauses specified in the Schedule. Section 2 exclusions Exclusions specific to Section 2 cover are listed in the applicable Institute Clauses noted in the Schedule. The General Exclusions applicable to both Sections on page 20 also apply. Additional benefits applicable only to this Section Certificates of Insurance/Letter of Credit Clause Where Goods are sold by You, You are authorised to issue and sign Certificates of Insurance in a format agreed to or provided by Us, to comply with letter of credit requirements strictly in conformity with the terms, conditions and limits of this Policy. If the letter of credit requires insurance terms different to the coverage under Your Policy, subject to You not issuing Certificates of Insurance with greater cover than provided in the Policy, You are authorised by Us to comply with the letter of credit requirement and show the insurance terms expressed in the Letter of Credit on Your Certificate of Insurance. You agree to indemnify Us for any claim which We are obligated to pay because a Certificate of Insurance has been issued that did not conform to the terms, conditions and limits of this Policy. Copies of Certificates of Insurance (when issued) are to be forwarded to Us as soon as possible after departure of the export shipment. CFR Pre-Shipment Clause Notwithstanding the legal ownership under Your purchase contract in the case of shipments on CFR or similar terms of sale, it is agreed that where: We are unable to establish the point during the Transit at which the loss event took place; or where You are unable to obtain compensation from the seller or other parties We will indemnify You for loss or damage to the Goods as if We had insured the Goods on the same terms and conditions as this Policy from the time of departure from the seller s warehouse or premises, provided that: You use all reasonable measures to attempt to recover the loss from the seller; and in the event of a claim being paid, We are subrogated to or assigned any right of recovery there may be under any other Policy covering the Goods prior to shipment. Duty Clause Where noted in the Basis Of Valuation contained in the Schedule, this Policy is extended to include the amount of any import duty and/or taxes paid or payable by You in respect of Insured Goods You have imported into Australia. 14